Insiders who bought Endurance Gold Corporation (CVE:EDG) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$7.5m as a result of the stock's 14% gain over the same period. In other words, the original CA$379k purchase is now worth CA$437k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Endurance Gold
Over the last year, we can see that the biggest insider purchase was by Independent Director Richard Gilliam for CA$200k worth of shares, at about CA$0.40 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.46), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Endurance Gold insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Endurance Gold insiders own about CA$30m worth of shares (which is 48% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Endurance Gold Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Endurance Gold insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Endurance Gold. When we did our research, we found 5 warning signs for Endurance Gold (2 are a bit concerning!) that we believe deserve your full attention.
Of course Endurance Gold may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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